Bangkok Condo Defies Global Economic Crisis
The global economy is still healing. Like an addict in rehabilitation, we still see signs of occasional relapse but it is generally in the process of recovery. There is however, one market that defies international gravity, Bangkok real estate. Bangkok residential yields recorded a gross yield average of 5.9%. In the last 18 months, Bangkok condominiums in the business districts have enjoyed a yield no lower than five percent and no higher than six percent. Smaller one-bedroom units usually enjoy yields higher than six percent. Bigger units go down at three percent.
The completion of many condominiums might change the climate in the next two years. Many one-bedroom units are going to be available which will increase supply which result to lower yields. Older buildings might be forced to pull their prices down which will level the playing field for new condominium units even with lower selling price. This will require a more comprehensive analysis for buyers intending to purchase units as an investment to guarantee maximum return on investment.
Sukhumvit and Central Lumpini, because they are considered the business districts, will most likely experience consistent demand especially among foreign residents. However, the convenience it offers in terms of proximity to the shopping district, hospitals, and other modern facilities will need to be balanced out by designing condominium interiors with a more natural style. Price is determined not just by the building location but also the quality, ambiance, and facilities of the units. As new design principles are developed, new buildings and smaller buildings may have just found the one thing that will make up for the small space they offer.